The authors propose a conceptual framework to explain whether and when the introduction of a new retail store channel helps or hurts sales in existing direct channels. A conceptual framework separates short-and long-term effects by analyzing the capabilities of a channel that help consumers accomplish their shopping goals. To test the theory, the authors analyze a unique data set from a high-end retailer using matching methods. The authors study the introduction of a retail store and find evidence of cross-channel cannibalization and synergy. The presence of a retail store decreases sales in the catalog but not the Internet channel in the short run but increases sales in both direct channels over time. Following the opening of the store, more first-time customers begin purchasing in the direct channels. These results suggest that adding a retail store to direct channels yields different results from adding an Internet channel to a retail store channel, as previous research has indicated.
This article introduces a new determinant of brand extension success, brand extension authenticity (BEA), as a complement to fit. The authors develop the BEA construct and a scale to measure it and then demonstrate that BEA captures consumer perceptions of brand extension legitimacy and cultural contiguity along four interrelated but distinct dimensions: maintaining brand standards and style, honoring brand heritage, preserving brand essence, and avoiding brand exploitation. They demonstrate the power of BEA in predicting consumer reactions to brand extensions, particularly among consumers with strong self–brand connections. Not only is BEA distinct from two conceptualizations of fit in brand extension literature—fit as similarity and fit as relevance—but it also moderates the effects of both fit dimensions on brand extension responses. By capturing a cultural and consumer relational perspective that shapes reactions to brand extensions, BEA provides an important, complementary construct for predicting brand extension success and enhancing brand value. Brand managers attentive to BEA may be able to stretch brands further than assessments of fit alone would suggest, but they risk failure in otherwise well-fitting extensions perceived as inauthentic.
Many physicians are adopting patient portals in response to governmental incentives for meaningful use (MU), but the stage 2 requirements for portal use may be particularly challenging for newer electronic health record (EHR) users. This study examined enrollment, use based on MU requirements, and satisfaction in a recently adopting fee-for-service multispecialty system. Between 2010–2012, overall portal enrollment increased from 13.2% to 23.1% but varied substantially by physician specialty. In 2013, over 97% of physicians would have met requirements for a stage 2 MU utilization measure requiring that patients download personal health information, but only 38% of all physicians (87% of primary care physicians [PCPs] and 37% of other specialists) would have met e-mail requirements. Satisfaction with the portal overall and with portal-based e-mails was high. These results suggest that later-adopting PCPs can succeed in providing satisfactory record and e-mail access but specialists may find reaching e-mail thresholds more difficult.
The authors review an incumbent business-to-business distributor of electronic components faced with the entry of more than 50 Internet-based competitors and offer an explanation for why the distributor prevailed. Underlying the explanation is an assertion that the appropriate unit of analysis is the buyer-distributor-seller triad, not the buyer-seller dyad. In the case examined, the channel activities were interrelated such that when each party calculated the costs and benefits of the activities that occurred within this three-way relationship, they outweighed the net gains from disintermediation or Internet intermediation. Particular conditions favoring the status quo included existing activities for sharing customer identification information between the distributor and the seller, a high proportion of negotiated distributor-customer contracts, and new entrants’reliance on open technologies. While no claims are made about the generalizability of this explanation beyond the case studied, the authors believe their assertion and hypotheses may have broader applicability.
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